Hi,
I'm in a similar situation. I have a condo and a single-home with mortgages. This year I starting using the condo as my office and moved into the single-home. The single-home is 50% for personal use and the other 50% are rooms I have rented.
The combined mortgage balance during FY2024 was 1,300,000 (more than the 750K limit). After following the instructions on IRS Pub. 936, my limit is 57.69%. (line 14)
My combined mortgage interest paid during the year 2024 was $60,000 So my deductible mortgage interest is $34,615 (the result of 60K*57.69%)
My question is about the remaining mortgage interest in IRS Pub. 936, Line 16, in my case the value is $25,385. The IRS publication mentions that this is considered personal interest, and it's not deductible unless all or part of any mortgage proceeds for business, investment, or other deductible activities. These activities are listed in Pub. 936 Table 2. The activity "deductible interest incurred to produce rents or royalties" is there.
With this information, because I'm renting rooms, can I include the value in IRS Pub.936 Line 16 (the remaining $25,385 in my example) as part of my rental expenses? If yes, how I do this in TurboTax?
Thanks!
